Helsinki (News release) - Driven by the overcapacity resulting from exceptional market developments during the past years, UPM Adhesive Materials continues centralizing its label material production to more cost competitive units and is planning to discontinue label materials production at its Nancy factory in France. The Nancy site would continue as a distribution terminal to offer best-in-class service and lead time to Western European customers. The plans would affect a maximum of 82 positions.

"These planned changes aim at supporting our growth by improving the overall profitability of our operations and maximizing synergies. By centralizing the production to more cost competitive factories, we will also improve the cost efficiency and quality of our products. The Nancy site is planned to be transformed to a distribution terminal to continue providing world class service to our customers in Western Europe," says Tim Kirchen, Executive Vice President, UPM Adhesive Materials.